Rare Debt Recast Among India’s Shadow Banks May See 49% Haircut
- Banks to restructure $808 million debt of Religare Finvest
- New owner of lender needs to infuse equity for restructuring
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Creditors to a struggling Indian shadow financier, once controlled by former billionaires Shivinder Singh and Malvinder Singh, are finalizing a rare debt recast in the sector by writing off almost half of the company’s loans, people familiar with the matter said.
Lenders to Religare Finvest Ltd., including State Bank of India, have agreed to take a 49% haircut on its 58 billion rupees ($808 million) debt, the people said, asking not to be identified as the information isn’t public. The restructuring may be implemented as early as the end of January, they said.